could have forced fund wind-ups, asset fire-sales, and significant business disruption.” Recognizing the threat, PFA mobilized quickly. Working alongside other industry bodies, including the Property Council of Australia, the association made a detailed submission and appeared before a Parliamentary Joint Committee to argue its case. The outcome was a major win—the government decided not to proceed with the changes. Under the proposed changes, the monetary thresholds for the wholesale tests, and particularly the asset and income tests, would have significantly increased. For many current investors, this would have meant losing access to wholesale investment products altogether. “The potential impact was enormous,” Healy recalls. “Many of our fund managers only hold wholesale licenses. If those investors were reclassified as retail, they simply couldn’t participate in those funds. It 138 BUSINESS VIEW OCEANIA VOLUME 07, ISSUE 10
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